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IEA: oil market is under threat due to a record decline in investment

Faced with a record protracted fall in oil prices over the past decade, energy producers have cut billions of dollars in costs, increasing the risk of raw material supply shortages in the future , according to the International Energy Agency (IEA).

"Historical reduced investment, which are observed in the oil industry at the present time, increase the likelihood of an unexpected outcome in the not too distant future, - the expert believes the IEA Neil Atkinson. - About $ 300 billion is needed to maintain the current level of production, while countries including the US, Canada, Brazil and Mexico, have had difficulty in maintaining investment at this level. "

"In order to survive, the oil industry needs investment, - he says. - If the investments are not resumed in the years 2017-2018, we will see a sharp rise in oil prices, as demand exceeds supply. "

US oil company ConocoPhillips, Chevron Corp. BP Plc and cut more than $ 100 billion investment, fired tens of thousands of employees, reduced dividends and sell its assets. Recall, the Organization of Petroleum Exporting Countries and other major producers, including Russia, are scheduled to meet in Doha next month, to discuss the limitations of production.

Meeting manufacturers

"There will be this meeting or not, it will not have dramatic consequences", - said Atkinson.

The price of WTI crude oil for May delivery fell 52 cents to $ 40.93 a barrel on the New York Mercantile Exchange to $ 40.95 as of 13:40 in Singapore.

Recall, the US oil reserves are at around 523.2 million barrels - the highest level since 1930, according to the Energy Information Administration.

According to IEA experts, supply and demand will continue to move towards balance in the second half of this year. Already in 2017 the oil market will experience a balance and stocks of raw materials will decline since 2018, he added. Global demand will grow by 1.2% per year for five years until 2021.